DAVID WILLETTS A UNIVERSITY EDUCATION January 2018

First there was Oxford and then Cambridge

Number of universities in European Countries (1300-1790)

Why not have more universities? “ Why universities and colleges should only be at Oxford and Cambridge I know no reason. It would be more advantageous to the good of all the people, to have Universities or Colleges, one at least in every great town or city in the nation as in London, York, Bristow, Exceter, Norwich and the like; and for the State to allow to these Colledges an honest and competent maintenance for some godly and learned men to teach the Tongues and Arts, under a due reformation.” William Dell, Puritan master of Caius College, Cambridge speaking to the Westminster Assembly of Divines. 1643

What is excellence and what is producer power? “The privileges of graduates in arts, in law, physick and divinity, when they can be obtained only by residing a certain number of years in certain universities, necessarily force a certain number of students to such universities, independent of the merit or reputation of the teachers.” Adam Smith

Government Legislation on Universities: A case study 1854 The Oxford University Act 1856 The Cambridge University Act 1857 Oxford University Act 1857 Universities of Oxford and Cambridge Act 1859 Oxford University Act 1860 Oxford University Act 1862 Oxford University Vinerian Foundation Act 1865 Universities Tests Act 1871 1877 Universities of Oxford and Cambridge Act 1880 Universities of Oxford and Cambridge (Limited Tenures) Act

Challenging the Edusceptics – the benefits of higher education

How to pay for it?

Median Wages: post-graduates, graduates, and non-graduates 2016

Marx was right. “If…higher education institutions are also “free”, that only means in fact defraying the cost of education of the bourgeoisie from the general tax receipts.” Karl Marx, Critique of the Gotha Programme 1875.

So was Robbins "I have little doubt that, as time goes on and the advantages of higher education are more generally perceived, and the burdens of financing its expansion are more severely felt, there may easily come a change in attitudes such that the equitable arguments for a considerable replacement of grants by loans will become practically relevant."

Four reasons for the current system The Principle – it is progressive The Economics – investing in human capital The Challenge – tackled under-funding of higher education and cutting public spending The Opportunity – End of number controls

“Why don’t we have price competition?” Income contingent repayment Competition for student numbers is a powerful incentive No good criterion for price differentiation

Ranking universities (1 of 2) University of Oxford University of Leeds University of Cambridge University of Birmingham University of Durham University of Southampton University of St Andrews Cardiff University University of Bristol University of East Anglia University of Exeter University of Liverpool Imperial College University of Strathclyde University of Edinburgh Heriot-Watt University University of Warwick King's College London University of York Oxford Brookes University University of Sheffield University of Surrey

Ranking universities (2 of 2) University of Dundee Edge Hill University Bournemouth University University of Salford University of Kent Brunel University London University of Portsmouth Teesside University Nottingham Trent University University of Huddersfield University of Hull University of Bedfordshire University of Brighton London South Bank University University of Worcester London Metropolitan University Queen Mary University of London University of East London University of Lincoln University of Wolverhampton University of Derby University of Bradford

A clue to the rankings

Percentage of first degree full time entrants from NS-SEC 4-7, 2014-15 (1 of 2) University of Oxford 10% University of Leeds 23% University of Cambridge University of Birmingham University of Durham 14% University of Southampton University of St Andrews Cardiff University 24% University of Bristol 15% University of East Anglia 25% University of Exeter 16% University of Liverpool 26% Imperial College of Science University of Strathclyde University of Edinburgh 19% Heriot-Watt University University of Warwick 20% King's College London University of York Oxford Brookes University 28% University of Sheffield 21% University of Surrey 29%

Percentage of first-degree full time entrants from NS-SEC 4-7, 2014-15 (2 of 2) University of Dundee 29% Edge Hill University 39% Bournemouth University 31% University of Salford 42% University of Kent 33% Brunel University London 43% University of Portsmouth Teesside University 46% Nottingham Trent University University of Huddersfield University of Hull University of Bedfordshire 50% University of Brighton 34% London South Bank University 51% University of Worcester 37% London Metropolitan University Queen Mary University of London University of East London 55% University of Lincoln University of Wolverhampton 57% University of Derby University of Bradford 58%

“Good universities should charge more.” But what makes a university “good”? Graduates earn more because of Social background of parents Prior attainment of students Geographical location Move up rankings also because of Research Excellence

“Students on high paying courses should pay more” Law, Economics and Management Medicine and STEM Arts and Humanities

Some bad ideas to change this system Differential fees – on what basis? Cut fees and cut resource A graduate tax – back to public spending Raise repayment threshold – is this the problem? Reallocate the “spending” to non-HE

Some better ideas to improve it A regular five year review Maintenance grant - more cash for students More funding for part time students A pupil premium for disadvantaged students More funding for high cost courses – STEM The interest rate?

Innovation: The British Problem “many of our industries have since the outbreak of war suffered through our inability to produce at home certain articles and materials required in trade processes, the manufacture of which has become localised abroad, and particularly in Germany, because science there has been more thoroughly and effectively applied to the solution of scientific problems bearing on trade and industry…A great part of all research will necessarily be done in Universities and Colleges which are already aided by the State…” Scheme for the organisation and development of scientific and industrial research Cd 8005, July 1915. Paragraphs 1 and 5

Dual funding Low trust transactional Research Council funding (£2.7b) High trust patient substitute for endowment from HEFCE (£1.6b) But a gap – no high trust funding outside universities.

Types of R&D as % of GDP United Kingdom France Germany United States Total Gross Expenditure on R&D (GERD) 1.7 2.26 2.84 2.74 Business Sector R&D (BERD) 1.1 1.46 1.93 1.94 Higher Education R&D (HERD) 0.44 0.46 0.49 0.39 Government R&D (GovERD) 0.13 0.3 0.42 0.31

China (People's Republic of) HE R&D % of Gross R&D COUNTRY HERD%GERD China (People's Republic of) 6.9 Korea 9.1 Japan 12.6 United States 14.2 Germany 17.3 France 20.6 Finland 22.9 United Kingdom 26.1 Sweden 29.0 Norway 31.1 Denmark 33.2

The British Model High on autonomy Low on application Good for the university rankings Bad for Innovation

Future Challenges Where: Brexit & Globalisation How: Technology What: The problems of specialisation

Where: Brexit & Globalisation Student flows :post-study work and the MAC opportunity Taking fee loans abroad Staff flows Horizon 2020 and after A campus in the EU?

Education Technology today

Education Technology tomorrow Disintermediated or disintermediator? MOOCS v SPOCs. The 2U model for masters Data Analytics – No back row

What: A broader education Percentages of girls and boys with GCSE A* doing that subject at A Level

DAVID WILLETTS A UNIVERSITY EDUCATION January 2018